Stock Market

Market Movers: Voda slumps; Airtel, Biocon jump; sell signal in 269 stocks

Mumbai: A rally in Bharti Airtel and some financial stocks drove the benchmark equity indices higher on Tuesday, in a session that saw Nifty form a small positive candle, which indicated an attempt by the bulls to regain lost ground.

While Bharti Airtel rose, peer Vodafone Idea nosedived after the Supreme Court verdict in the adjusted gross revenue (AGR) case. Sensex ended the session 273 points higher at 38,901 points, and Nifty 83 points up at 11,470.

“Liquidity, driven by high FII (foreign institutional investors) inflows in August has provided good support to the market in spite of a general concern regarding high valuation in some pockets,” said Vinod Nair, head of research, at Geojit Financial Services.

Here is a lowdown on what happened in Tuesday’s trade:

Voda slumps, Airtel jumps
Vodafone Idea crashed 12.8 per cent to Rs 8.89 while peer Bharti Airtel gained 6.38 to Rs 546.75 after the Supreme Court on Tuesday ordered telecom companies to pay their AGR dues in a staggered manner over 10 years. Analysts said the ruling would certainly put pressure on the beleaguered Vodafone Idea, which owes more than Rs 50,000 crore in AGR-related dues. Separately, Vodafone Idea has sold its 11.15 per cent stake in Indus Towers for over Rs 4,000 crore even as Bharti Infratel decided to go ahead with the closure of its mega towers merger with Indus. As for Airtel, Singapore-based Integrated Core Strategies (Asia) PTE bought 3,80,10,584 shares of telecom major on Monday.

Future Retail tumbles

Shares ofFuture Retail tumbled nearly 10 per cent to Rs 146.10 after the world’s largest sovereign wealth fund The Government Pension Fund Global sold 95,00,000 shares of the company on Monday. The sovereign wealth fund held 2.28 per cent stake in the company at the end of June.

Biocon jumps 7.8%
Biopharmaceutical company Biocon jumped 7.81 per cent to Rs 405.80 after its unit Biocon Biologics and Mylan launched Semglee (insulin glargine injection) in vial and pre-filled pen presentations in the US.

Market breadth Weak

Despite a bounceback in the frontline indices after Monday’s carnage, losers beat gainers in a 1.2:1 ratio on BSE, indicating weak market breadth. The rally was narrow, and was driven by a fewer stocks.

Promoter actions: Electrosteel Castings, Adani Transmission

Promoters Electrocast Sales India, GK & Sons, and GK Investments bought a total of 10,00,000 shares of Electrosteel Castings, and hiked their stake in the iron pipes maker, which pushed its shares 2.29 per cent higher to Rs 15.21 per share.

Promoters Gautam & Rajesh Adani, on behalf of SB Adani Family Trust revoked the pledge on a total of 1,36,09,000 shares. Shares of power distributor rose 5.05 per cent to Rs 266.50.

Stocks that hit 52-week highs
A total of 81 stocks logged 52-week highs on the BSE. They included Adani Green Energy, CG Power & Industrial Solutions, IndiaMART InterMESH and L&T Infotech, among others.

Stocks that hit lower limits
As many as 337 stocks hit their lower circuit on the BSE. They included Future Retail, Repco Home Finance, Dish TV India, Sadbhav Engineering, 3i Infotech and Lasa Supergenerics, among others.

Stocks that flash sell signals
Some 269 stocks signals on BSE flashed sell signals, as they slipped below the signal line on the MACD indicator. They included Tata Power Co, Arvind, NCC, PTC India, Zee Learn, Ashoka Buildcon and Graphite India, among others.

Where is Nifty headed?

Nagaraj Shetti, technical research analyst, HDFC Securities, said the near-term trend status remains negative for Nifty. “Today’s upside bounce may be a minor cheering factor for bulls to make a comeback, but the market is expected to reverse down from the highs in the next 1-2 sessions,” he said. “The recent swing high of 11,794 is unlikely to be breached on the upside in the short term. Immediate support is placed at 11,365.”

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